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The price of high grade iron ore fell down recently

  • Friday, April 19, 2019
  • Source:ferro-alloys.com

  • Keywords:price, high grade, fell down
[Fellow]The price of high grade iron ore fell down recently

[ferro-alloys.com]Despite the release of stronger-than-expected Chinese economic data, mid and higher grade iron ore prices fell heavily again on Wednesday, undermined by reduced concern about the outlook for Brazilian supply.

According to Metal Bulletin, the spot price for benchmark 62% fines slumped 1.6% to $93.23 a tonne, extending its decline over the past three sessions to 3.4%.

Higher grade ore was also hit hard with the price for 65% fines sliding 1.5% to $107 a tonne.

The weakness across mid and higher grades coincided with news that iron ore production at Vale’s Brucutu facility in Brazil will resume shortly having been shuttered since early February, easing concerns over the supply outlook for higher grade ores.

“A Brazilian judge has overturned an injunction last month that prevented Vale’s 30 million tonne per annum Brucutu mine from restarting. The mine was originally halted in February, before being provided authorisation to restart last month, but that didn’t come to pass because of an injunction,” said Vivek Dhar, Mining and Energy Commodities Analyst at the Commonwealth Bank.

“The latest ruling should pave the way for the mine to restart soon, easing the deficit in iron ore markets.”

Dhar said the resumption of production at the Brucutu facility will likely support the benchmark iron ore price “in the $80s” in the medium term, although he acknowledged near-term supply concerns could keep the benchmark price above $90 a tonne “for a few weeks yet”.

In contrast to the falls in higher grades, prices for lower grade ore rebounded strongly having fallen for two sessions with 58% fines surging 2.7% to $79.34 a tonne, leaving it within touching distance of the multi-year high of $79.95 a tonne set on April 9.

Chinese iron ore port inventories fell heavily last week, according to data from Shanghai Steelhome, with the vast majority of these stockpiles comprising lower grades. That news, along with a recent decline in Chinese steel futures, may have contributed to the divergence in spot markets on Wednesday.

 

  • [Editor:王可]

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